Rama Steel Tubes Limited to Acquire Automech Group UAE, Accelerating Entry into High-Margin Fabrication with Engineering Segments
Combination leverages Automotech’s world-class engineering and machining capabilities with Rama Steel Tubes Limited’s manufacturing scale Rama Steel Tubes Limited (NSE: RAMASTEEL; BSE: 539309), one of India’s leading manufacturers of steel pipes and tubes, today announced its plan to acquire Automech Group, a UAE-based multi-award-winning provider of high-precision manufacturing services, machines, and components for a total consideration of AED 296 million (Approx Rs. 728 Crores). This strategic transaction marks a defining milestone in RSTL’s journey to diversify into high-value engineering services and strengthen its presence across the GCC and MENA regions. Post-acquisition, RSTL expects consolidated total revenue to rise by over ~113% (FY27E post-acquisition expected figures vs FY25 reported consolidated figure) from Rs. 1,065 crores in FY25 to approximately over Rs. 2,200 crores by FY27E, with EBITDA margins improving from ~4% to ~10%. Consolidated EBITDA is expected to nea...